State-owned gas distributor PT Perusahaan Gas Negara (PGN) will invite bids next year for the construction of a $600 million pipeline linking Riau and North Sumatra, The Jakarta Post reported.

PGN president director Sutikno said that the 360-km pipeline, which will transmit between 200 million and 300 million standard cubic feet of gas per day (MMSCFD) from Duri, in Riau, to Medan, North Sumatra, was expected to come onstream by the end of 2007.

"The pipeline will connect with the two pipelines linking South Sumatra and West Java," Sutikno said.

Sutikno added that the company was still focusing on the completion of the pipeline linking Grissik in South Sumatra and Rawa Maju in West Java, which is expected to become operational at the end of this year.

Another pipeline, between Pagardewa in South Sumatra and Cilegon in Banten, should be completed by February 2007.

The two pipelines, which will span a total of 1,106 km and have the capacity to transport 950 mmscfd, are expected to cost about $1.1 billion.